Newslink Global Insurance Trends-The Week

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This week, the latest CBI/PwC Survey said that optimism in the UK financial services sector fell for the third consecutive quarter in 2017-Standard & Poor's also reviewed the UK insurance market. ILS issuance reached close to $10bn last year, said the latest Willis Towers Watson quarterly market update, whilst the regular ISO/PCI review reported that US P&C net income dropped to $22.4bn from $32.1bn for the first nine months of 2017. Cyber issues kept in the headlines-a new report from the International Underwriting Association(IUA) Cyber Underwriting Group highlighted challenges for the insurance industry, and fraudulent instruction incidents reported to Beazley Breach Response Services(BBR Services) quadrupled in 2017. An IUA new drone report reviewed opportunities and challenges for general liability insurers.
A London Single Claims Agreement across the market was launched to enable quick and efficient authorisation of claims by allowing policy leaders to agree non-complex payments up to £250,000 on behalf of following carriers. Insurance Europe published its response to an European Commission(EC) consultation on institutional investors and asset managers’ duties regarding sustainability, and separately welcomed the report on sustainable finance published by the High-Level Expert Group(HLEG) which included recommendations for Solvency II adjustments. The London Market Association(LMA) Academy is to offer a range of technical programmes and courses internationally.
InsurTech funding by (re)insurers was up 36% at $2.3bn in 2017, according to the latest quarterly Willis Towers Watson Briefing, whilst InsurTech start-up Inzura completed its first major funding of £1m. BIBA research indicated that UK telematics-based policies neared 1 million, whilst The Geovation Programme, an Ordnance Survey and HM Land Registry initiative, is now accepting applications from start-ups using location and/or land and property data. A Pegasystems/YouGov UK insurance customer survey indicated ways to retain loyalty at renewal. The board of PPL announced that the electronic placing platform was used to close the Aon Client Treaty facility for 2018-probably the largest and most complex transaction in the Lloyd’s market. Insurity Bridge P&C software suite was chosen in Texas, and Majesco's Distribution Management solution was selected by Reliance Nippon Life in India.
Allianz is to to acquire 100% of its Sri Lankan subsidiary. MetLife postponed an earnings report for the fourth quarter and 2017 as it continued the review to assess adjustment for reserves previously released. Enstar finalized a reinsurance to close transaction with AXIS Managing Agency for Novae Syndicate 2015 and prior underwriting years, and Swiss Re launched its Asia Regional HQ in Singapore and appointed a new Regional Board of Directors. Ed appointed a cyber specialist.
Last year and fourth quarter results started to flow-they included The Hanover("pleased with full year and fourth quarter"), RenaissanceRe(net loss of $244.8m for 2017 but buoyed by January renewals), XL Group(net loss of $560.4m for 2017 but ceo McGavick says "well positioned for what comes next"), Aon(revenue up 10% in fourth quarter) and Marsh & McLennan(operating income up in fourth quarter).
Articles on the above topics are included in those added to the Insurance Newslink and Financial Newslink global trends database services last Wednesday and today at www.onlystrategic.com-featuring advanced structured search, report facilities, and a free 14 day full trial.